Omega Owners Forum

Chat Area => General Discussion Area => Topic started by: vauxfan2k on 07 October 2010, 21:10:56

Title: holiday pay tax
Post by: vauxfan2k on 07 October 2010, 21:10:56
I have a weeks holiday left to take, but im not fussed as it wil just be wasted by sleeping or breaking something on the car.

I told my boss today i want to cash it in, he has told me no problem but since it will be added to my weeks pay I will be taxed heavier on the holiday pay than if I was to take the week off.

is this right? he reckons I could lose about £50 of my weeks holiday money.  >:(

thanks

Steve
Title: Re: holiday pay tax
Post by: Kevin Wood on 07 October 2010, 21:20:43
It should be treated like any other PAYE income as far as I can see.  I'm not sure what he's saying - that you'll be worse off than if you didn't get paid it at all?

Kevin
Title: Re: holiday pay tax
Post by: Richie London on 07 October 2010, 21:21:27
i cant see how personally, its just a weeks money paid as usual
Title: Re: holiday pay tax
Post by: Entwood on 07 October 2010, 21:22:37
Initially yes .. as the tax will be taken "from the tables" by the paying company .. and the tables are probably on their computor !!

However, over the year it will even out so that you wil pay the same tax on it as "normal" .. unless it takes you into a higher tax bracket.

Will all be sorted when you do your end of year tax return, or if you don't do one, when your employer sends in your last statement to the IR.
Title: Re: holiday pay tax
Post by: vauxfan2k on 07 October 2010, 21:23:14
he reckons Ill get taxed heavier as its added to my wage, essentially making that weeks wage double, so taxed accordingly.

whatever happened to cash in hand grrrr  >:(
Title: Re: holiday pay tax
Post by: Richie London on 07 October 2010, 21:24:07
Quote
Initially yes .. as the tax will be taken "from the tables" by the paying company .. and the tables are probably on their computor !!

However, over the year it will even out so that you wil pay the same tax on it as "normal" .. unless it takes you into a higher tax bracket.

Will all be sorted when you do your end of year tax return, or if you don't do one, when your employer sends in your last statement to the IR.


paye will go on a higher tax bracket, double wages, was just thinking that.
Title: Re: holiday pay tax
Post by: HolyCount on 07 October 2010, 21:31:19
Boss could always leak it into your pay over a few weeks as a bonus.
Title: Re: holiday pay tax
Post by: vauxfan2k on 07 October 2010, 21:33:59
my boss is an ex accountant, so does everything strictly by the book, no cash in hand no bonuses, everything taxed im afraid.

the "ive put an extra tenner in your pay this week" works out about 4.30 after tax, so made it an extremely wasted 1hr overtime.
Title: Re: holiday pay tax
Post by: Richie London on 07 October 2010, 21:43:43
Quote
my boss is an ex accountant, so does everything strictly by the book, no cash in hand no bonuses, everything taxed im afraid.

the "ive put an extra tenner in your pay this week" works out about 4.30 after tax, so made it an extremely wasted 1hr overtime.


being self employed they just take 20% from me and i make sure i dont go into a higher tax bracket and have loads of expenses, last year was my worse years since 1988 when i became self employed, no rebate  :(
Title: Re: holiday pay tax
Post by: Kevin Wood on 07 October 2010, 22:15:18
Quote
Quote
Initially yes .. as the tax will be taken "from the tables" by the paying company .. and the tables are probably on their computor !!

However, over the year it will even out so that you wil pay the same tax on it as "normal" .. unless it takes you into a higher tax bracket.

Will all be sorted when you do your end of year tax return, or if you don't do one, when your employer sends in your last statement to the IR.


paye will go on a higher tax bracket, double wages, was just thinking that.

It'll all come out in the wash at the end of the tax year because a rebate will be due so it will either be paid or taken from next years tax code.

Kevin